With metal prices rising, I don't really see how this is the case, I mean don't pennies and nickels cost more than they're worth to actually make? Oh well.....maybe it is the fact that metal pieces last longer as noted in the article and the longevity makes up for the cost. Anyway, which would you prefer? http://finance.yahoo.com/banking-bu...-1-bills-could-save-billions?mod=bb-budgeting Washington has come down with a case of fiscal fever as the Obama administration proposes everything from spending freezes on domestic programs to selling off unused government property to bring the budget back in line. Now, one study argues that the government can save billions of dollars simply by making a change to the currency itself. Earlier this month, the U.S. Government Accountability Office issued a formal proposal to the Treasury and Federal Reserve noting that if it eliminated the $1 bill and replaced it with the $1 coin, the country could save roughly $5.5 billion during the next 30 years. The reason, according to the agency's report, is that dollar bills have a shorter lifespan than dollar coins because they wear much faster, which in turn requires the government to spend more to print new bills. The GAO estimates that phasing out dollar bills in favor of coins would require a four-year transition period, during which the government invests in the new currency, but following that, the government would save an expected $522 million each year from the change. Unfortunately, as the GAO notes, there is one problem with the plan: When given a choice between dollar coins and dollar bills, Americans always choose bills. "GAO has noted in past reports that efforts to increase the circulation and public acceptance of the $1 coin have not succeeded, in part, because the $1 note has remained in circulation," the agency wrote in its report. So if we are ever going to make the switch to dollar coins, as other countries like Canada have done, the GAO suggests the only way to do so is to phase dollar bills out of circulation altogether. Before you start hoarding your dollar bills though, keep in mind that the GAO has made similar proposals four times during the past two decades, and obviously dollar bills are still in circulation. The only difference this time is that the overall climate in Washington is more geared toward budget cutbacks now, but given that it would take several years for the savings to kick in, this seems unlikely as well. Still, we'd like to pose the question to readers. Would you be willing to eliminate dollar
I hate coins and I dont shop at the dollar store, so I will be entirely spending now on items 5 dollars or over.
This idea has been out there for decades. 5 billion over the next THIRTY YEARS? Ummm ok, whatever. Just some yahoo at Yahoo trying to fill space. Carry on.
In Europe they use coins for denominations worth more than one US dollar. Doesn't seem to cause too many problems. I don't really care either way. The only time it ever really makes a difference for me is vending machines, in which case the coins are clearly superior.
Exactly. The 1 Euro or 1 Pound was always in coins and most people don't have a problem with it. Here in the US it's going to be a change if it goes through but after a while it will just be normal.
If they want to make the change, fine, but I'll stick with paper so long as it is available. I carry bills in wallet, but I won't carry coins. Actually, come to think of it, as long as Coke machines start taking $5 bills (which seems reasonable if it can use dollar coins to make change), then it won't hurt any to not have dollar bills. I usually use plastic anyway.
Coins are terrible. I don't like carrying them. If they switch to that system, I will have to put them in some sort of bag. Like a dime bag. Will have all my dimes in that bag.
In Geneva, our lowest paper bill is 10 CHF (pretty much equivalent to $10 USD) to 1,000 CHF. They're pretty bills. Coins are used for 5 CHF, 2 CHF and 1 CHF, which I have come to love.
I'd rather just round everything up to 5 or down to 0 and get rid of the penny. GOD I hate those things! Nothing but trouble, I tell you.
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